Estonian Review E E S T I R I N G V a a D E VOLUME 18 NO 19 APR 30- MAY 6, 2008

Home , Andres Tarand, Mart Laar, Toomas Hendrik Ilves

Estonian Review E E S T I R I N G V A A D E VOLUME 18 NO 19 APR 30- MAY 6, 2008

LITHUANIAN PRESIDENT’S STATE VISIT FOREIGN NEWS 76% of Population Supports Giving Aid to Poorer Nations May 6 - The results of a public opinion survey study showed that Estonians’ interest towards developing cooperation has increased significantly. The population’s interest in global issues has grown from 57% to 67% since 2005. Out of regular residents, 81% had heard about Estonia’s development co-operation, while 99% of opinion leaders knew about this topic. It was also clear from the survey that the population’s support for providing aid to poorer President Toomas Hendrik Ilves with his Lithuanian colleague Valdas countries had grown from Adamkus in Tallinn 65% to 76% since the last study. The reason for President Ilves met with the Lithuanian Head of State providing aid that was Apr 30 - President Toomas Hendrik Ilves received Lithuanian President most often mentioned was Valdas Adamkus, who arrived on a state visit to Estonia. The discussions at to help those in need while the meeting focused primarily on cooperation between the Baltic countries opinion leaders also on issues related to energy security, the European Union Neighbourhood brought up moral Policy, and Baltic Sea strategy. obligation as a reason. Speaking of energy security, the Estonian Head of State stressed that electricity Foreign Minister Urmas import from third countries is one of the primary dangers for the European Union’s Paet believes that every domestic market and its energy security. “A solution to the problem of reliable person can make a supply can only be found with honest cooperation between the member states in contribution to help order to create new energy connections and guarantee independence from unstable developing countries and energy suppliers,” the Head of State noted. their citizens. “I’m pleased “Energy is a key point in Baltic Sea strategy,” President Ilves stated at the to see that more than meeting. According to the President, the Baltic Sea Region is among the areas of three quarters of Estonian the European Union with the greatest economic potential, and in addition to the people believe that we current forms and activities of cooperation, the Heads of State saw promise in the should help those who free movement of services and labour. have less than we do,” The European Union Neighbourhood Policy was also discussed at the meeting, said Paet. and Presidents Ilves and Adamkus stated that Europe’s current neighbourhood “However, we must policy has justified itself and it must be developed further. continue to explain to the “I think it is important that each partner state be approached individually,” the population why Estonia, Estonian Head of State noted. “The countries that are more successful and are able the European Union, and to reform faster should be allowed to move forward faster,” president Ilves said. international organisations The Lithuanian Head of State expressed his support for the joint declaration co-operate to alleviate the adopted by President Ilves and Polish President Lech Kaczyński in March, which situation for many nations calls for the governments of the European states to discuss the possibility of struggling in the grip of creating an international commission to investigate Communism’s crimes against development problems,” humanity and violations of human rights. Paet said. “Being acquainted with and understanding each other’s history is an important precondition for the European Union’s domestic solidarity,” said President Ilves.

FOREIGN NEWS Prime Minister Andrus Ansip also met with his Czech colleague to discuss the implementation of the President Ilves met with the Albanian Lisbon Treaty that will coincide with the European Prime Minister Union Presidency of the Czech Republic as well as May 1 - President Toomas Hendrik Ilves met the near future of the enlargement of NATO and the with Sali Berisha, the Prime Minister of possibilities for strengthening the cooperation Albania. between the two countries. According to the Estonian Head of State, while Speaking about the missile defence system the relations between the two countries are good, planned to be erected in the Czech Republic Ansip they should definitely be actively developed further, said that it was not just in the interests of the Czech “Albania has great potential as both a tourist Republic or the United States but of the whole destination and an investment environment, and world. therefore, your country definitely needs broader "We want the air space above us to be policed, I introduction to demonstrate how far you have am very much satisfied with the decision of NATO's come.” Bucharest summit on the building of a missile Under discussion at the meeting were the defence system above all NATO member countries," developments in Albania during the last few years Ansip said. and President Ilves recognized the country’s The Estonian prime minister expressed pleasure achievements in the field of information technology, at the fact that his Czech colleague was in Tallinn by affirming that Estonia is ready to provide together with a business delegation. Ansip comprehensive advice and help to Albania in the expressed the hope that this would enliven economic development of an e-state. contacts between the two countries. Ansip said that President Ilves also congratulated Prime Minister the trade balance between Estonia and the Czech Berisha on the occasion of the invitation for NATO Republic was in deficit on the Estonian side and it membership issued to Albania. “However, it is would apparently remain so for a long time. "There important not to rest on one’s laurels and to are no plans to start making cars in Estonia in the continue carrying out reforms and making them near future and we will continue to buy Skoda cars permanent, because, in addition to being from the Czech Republic," Ansip noted. domestically beneficial, this is necessary for the fulfilment of obligations resulting from NATO European Parliament Discussed membership,” the Head of State noted. Environmental Impact of Baltic Sea Gas President Ilves and Prime Minister Berisha also Pipeline discussed the Kosovo question and stated that the primary goal now is the development of a May 6 - The external affairs and energy substantively functioning state in Kosovo. Prime committees of the European Parliament Minister Berisha thanked Estonia for its contribution discussed the environmental impact of the to the military operations in Kosovo. Baltic Sea gas pipeline; the full house will Prime Minister Ansip also met recently with endorse the respective report in July. Berisha to discuss cooperation projects between the The energy committee endorsed without single two countries as well as issues of the Balkan region, against vote an opinion drawn up by the Estonian especially the situation in Kosovo. Social-Democrat Andres Tarand. The legally non-binding opinion emphasizes the Ilves: “Czech Presidency Will Coincide special risk of pollution to the Baltic Sea, a shallow and relatively closed sea, and recommends with a Time of Significant Changes” unambiguous designation of responsibility for the May 6 - President Toomas Hendrik Ilves met contingency of possible accidents. with Czech Prime Minister Mirek Topolánek, By the opinion drawn up by Tarand the energy with whom issues related to the European committee recommends that in addition to chemical Union and energy security were primarily weapons sunk into the Baltic Sea also the effect to discussed. the building of the pipeline of fully loaded warships According to the Estonian Head of State, the sunk into the Gulf of Finland should be thoroughly bilateral relations between Estonia and the Czech studied. Simultaneously, the opinion includes a Republic have historically been very good. “There proposal to consider the option of an overland are no problems, only common interests. This is alternative to the track. due, in great part, to the similarities of our foreign The opinion of the external affairs committee policy priorities regarding the enlargement takes into consideration an amendment by Estonian processes of the European Union and NATO,” Social Democrat Kartin Saks who underlined in her President Ilves noted. speech the need to seriously consider also an In January 2009, the Czech Republic will take overland pipeline, which would be cheaper and have over the European Union Presidency from France. a smaller environmental impact. “Your Presidency will coincide with a time of The German proposal contains a recommendation significant changes – the implementation of the for the appointment of an advisory body of Lisbon Treaty, European Parliament elections, the representatives of all Baltic Sea countries to steer development of a uniform foreign service for the the gas pipeline project. European Union,” President Ilves said to the Czech Prime Minister. “I am sure that the Czech Republic will manage these processes successfully and hope that we will succeed in effectively cooperating in many fields of activity,” Ilves added. Foreign Minister Paet Condemns Foreign Minister Urmas Paet stated that Latin Expulsion of USA Diplomats from Belarus America and the Caribbean Sea region are some of the most problematic areas in the world in terms of May 5 - Foreign Minister Urmas Paet expressed illegal small arms trade. “We want to help the UN extreme indignation over the decision of the and other international organisations in their efforts authorities in Belarus to expel ten USA to achieve internal stability and a positive economic diplomats working in the USA’s Minsk embassy situation, build up a democratic society, and from the country. advance regional integration in these countries,” “The Belarusian authorities justify this move by said the foreign minister. saying they want to equalise the size of the staff The contribution of the Estonian Foreign Ministry between the embassies in Minsk and Washington, will go towards helping organise a UN-arranged but let’s be honest—this is not a very convincing seminar on increasing capabilities for the prevention argument,” said the foreign minister. He added that of small arms and light weapons trade in Latin this behaviour punishes the residents of Belarus America and the Caribbean Sea nations. The goal of more than anybody else. “The USA puts millions of the seminar is to help implement the international dollars into supporting tens of aid programmes in instrument for identifying and tracing illicit small Belarus that the nation’s own leaders aren’t capable arms and light weapons. The settings of the of providing,” said Paet. According to him, “in instrument will be introduced, along with the tasks addition to civil society development programmes, that the nations must undertake in order to plans to advance USA-Belarus cultural and implement the instrument. educational relations could also suffer, which would further worsen the situation for people there.” Mart Laar Shares Experience of Accession The foreign minister expressed solidarity with the USA and its diplomats, emphasising that Belarus to EU, NATO in Ukraine itself will be responsible for the consequences of its May 6 – Former prime minister Mart Laar, met decision. For this reason, Paet called upon Belarus to with the first deputy prime minister of Ukraine revoke its short-sighted decision. The foreign in Kiev in order to share with him experience minister is certain that the European Union will soon of Estonia's integration with the European reach a common viewpoint on this issue and will Union and NATO. carefully follow developments in the situation. Prime Minister Grygori Nemyrya spoke about Ukraine's plans of rapprochement with the European Parliament to Finalize Ratification of Union and of applying for a membership action plan Lisbon Treaty in June from NATO. Also the economic reforms launched in Ukraine and Estonia's outlooks of supporting May 6 - The Estonian parliament will decide in Ukraine's integration with the West were discussed. June whether or not to ratify the Lisbon Treaty, Laar said that Estonia was being regarded as the the document intended to reform the European most successful transition country and as a result Union. interest in the Estonian experience was high in Väino Linde, the chairman of the constitutional Ukraine. committee said that the bill on the ratification of the Besides, the meeting focused on more effective Lisbon Treaty would have its second and last reading cooperation in increasing awareness of the crimes of on June 11. He said it would be clear by that date Communism and their condemnation. whether any acts must be amended after the Laar together with Zbigniew Brzezinski, the endorsement of the treaty. national security adviser to the former US President The aim of the treaty is to strengthen the Jimmy Carter and former German Defence Minister effectiveness and democratic legitimacy of the Volker Ruehe belongs to a group of experts European Union and to increase its unity. In Estonia consulting Ukraine on issues of its development. The the document will be ratified by the parliament as it group recently published a report on the situation in is an international agreement that may not be put to Ukraine and the challenges facing the country. a referendum. . According to the Foreign Ministry also the other Estonian Embassy in Turkey Organised member countries of the European Union will overwhelmingly ratify the treaty in parliament. Until Tree-planting Event the present it has been done by Hungary, Slovenia, Apr 29 - Within the framework of the Malta, Malta, France, Bulgaria, Romania, Poland, celebration of the 90th anniversary of the Slovakia, Austria, Portugal and Denmark. Estonian Republic, the Estonian Embassy in The document will enter into force from next Turkey organised a tree-planting day in January if all the 27 member countries have ratified Hansoglan, near Ankara. The event took place it and deposited the ratification letters with the with the co-operation of the Turkish Ministry of Italian government. Otherwise the treaty will enter the Environment. into force on the month following the depositing of Estonian Ambassador to Turkey Märt Volmer the last ratification letter. emphasised in his speech that Estonia is a green nation, with half of its area covered in forests. Estonia Supports Prevention of Illicit “Forests are our greatest richness, and the forest Arms Trade with 100,000 kroons has a well-defined position in our culture and history. With this tree-planting event, we would like May 5 - The Foreign Ministry allocated 100,000 to bring a little bit of Estonia and the Estonian way kroons for the UN Office of Disarmament of thinking to Turkey,” said the Estonian Affairs’ extra-budgetary fund to help prevent ambassador. the illicit trade of small arms and light In honour of the 90th anniversary of the Republic weapons in Latin American and the Caribbean of Estonia, representatives have planted over 2000 Sea nations.

3 trees in Argentina, Saudi Arabia, Russia, Mexico, Latvia, Turkey, Iraq, and other nations. ECONOMIC NEWS

Currency rates in kroons: http://www.eestipank.info/dynamic/erp/erp_ en.jsp (Bank of Estonia)

IMF Mission to Arrive in Estonia May 6 - A mission from the International Monetary Fund (IMF) will be in Estonia on an annual visit until May 19, meeting with representatives of the private sector and the government to discuss Estonia's economic policy situation. The six-member delegation will be offered an overview of the development and outlooks of the Estonian economy, the Bank of Estonia stated. The members of the IMF mission also will be given information about the state of affairs in Director General from Ministry of Environment Estonia's financial sector and developments in fiscal and Forestry of Turkey Hanifi Avci and Estonian policy. Other topics to be discussed include outlooks ambassador to Turkey Märt Volmer planting for joining the Euro zone and potential risks for trees. economic development. On the basis of the nearly two-week visit by the Visa Applications can now be Completed IMF mission to Estonia a report will be drawn up in on Internet the summer. Estonia's last Precautionary Stand-by th May 6 – Starting May 6 it is possible to fill out Arrangement (PSBA) with the IMF expired in August an application form for an Estonian visa on the 2001. Since then cooperation with the IMF has website on the Foreign Ministry. continued in the form of annual economic policy Anybody with an email address can fill out a visa consultations (the so-called Article IV consultations). application at the address www.vm.ee. After the form is filled out, it must be printed out and signed, Software Developer Webmedia Boosts since Estonian representations can only process signed applications. The visa application is also sent Profit by 37% to the visa applicant’s email address. May 6 - AS Webmedia, which ranks as one of Tourism companies can also fill out visa the largest software developers in Estonia, applications on the internet, though these earned a profit of 22.1 million kroons (EUR applications must still include the signature of the 1.41 mln) in 2007. applicant . The figure marks an increase of 37 percent over the preceding year. DEFENCE NEWS Operating revenues grew 47 percent year on year to 135.1 million kroons, it appears from the Estonian Parliament Supports President's company's annual report. Exports surged 72 percent Constitutional Amendment Motion and revenue per employee was up 35 percent. May 6 - The Estonian parliament on with 58 The size of the company's undistributed profit votes in favour decided to support the was 51.6 million kroons. The proposal of the constitutional amendment initiated by management board is to retain the profit earned in President Toomas Hendrik Ilves on the 2007. reorganization of management of state defence The number of employees grew by 18 percent in and increasing civilian control. 2007 to stand at 195 at the end of the year. Labour As the parliament accepted the constitutional costs amounted to 64.8 million kroons. committee proposal to amend the Constitution by Webmedia AS is a company of Webmedia Group, two memberships of the parliament, the act must be which has offices in Estonia, Lithuania, Finland, confirmed also by the next membership of the Romania and Serbia. Webmedia has clients in 15 parliament. In the next membership the bill will be countries in Europe, the Middle East and Asia. put on the final voting in the first reading where it needs a majority of at least three fifths of the votes. Extension of Muuga Container Terminal to If passed, the act will enter into force three Cost EUR 55 Million months after promulgation. May 6 - The supervisory board of the state- The bill initiated by the president would remove owned port company Tallinna Sadam (Port of from the Constitution a reference to the defence Tallinn) approved plans to build an extension forces commander and supreme commander and if of the container terminal at the Muuga port and when the amendment enters into force the just outside Tallinn at a cost of 55 million parliament would have to pass a separate act to euros. regulate the appointment and dismissal of members The tender to perform the works has been won belonging to the defence forces command. At by a consortium made up of KMG Insenerehituse AS present the defence forces commander is appointed and two Danish companies. by the parliament at the president's proposal.

4 The extension would be able to handle 500,000 containers annually. The consortium is to build 400 meters of new quay line and lay out port terminal grounds on 27 hectares in the course of two years. The first phase of the extension of the eastern part of the Muuga port is meant mainly for handling north-south cargo flows of the Baltic Sea region, Seli explained. As regards servicing the more large scale west- east trade flows, there are still problems that need to be solved, he said. Port of Tallinn has signed an agreement with Chinese partners and is now continuing talks with them as regards the operation of the expanded container terminal.

Building Equipment Rental co Cramo Estonia's Performance Improves Strongly in 2007 May 5 - The earnings and profit of Cramo Estonia, a building machinery and equipment rental company of the Finnish-Swedish Cramo group, increased substantially last year. According to Cramo Estonia's annual report, the sales revenue grew 29 percent to 358 million kroons and net profit soared 35 percent to 125 million kroons. Rental of building equipment accounted for 88 percent of the operating income. The company judged the year 2007 to have been very successful. Cramo Estonia invested 142 million kroons last year. Cramo Estonia's retained profit stands at 400 million kroons.

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